| Obama to force lenders to accept short sales... | |
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| Tweet Topic Started: Mar 7 2010, 11:24 PM (494 Views) | |
| LTC8K6 | Mar 7 2010, 11:24 PM Post #1 |
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Assistant to The Devil Himself
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Obama wants to pay delinquent home "owners" to sell at a loss, and force lenders to accept it... http://www.nytimes.com/2010/03/08/business/08short.html
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| Kerri P. | Mar 7 2010, 11:38 PM Post #2 |
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My mom just turned in the keys to her house in Mass back to the bank. because the bank was blocking the sale on her home using a short sale. Bank of America really screwed her over. |
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| LTC8K6 | Mar 7 2010, 11:49 PM Post #3 |
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Assistant to The Devil Himself
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Must be nice. The same banks can finance the new loans on the properties, and we can start the game all over again next year when the new loans are in default.. |
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| Baldo | Mar 8 2010, 12:22 AM Post #4 |
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I am sorry to hear that. It does point out that the foreclosure situation does hit home and that their are real people who are losing. |
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| kbp | Mar 8 2010, 09:41 AM Post #5 |
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That's $3,500 per house just going POOF. WTH does it solve? Look at the example provided, a house selling for less than $o.30 on the dollar. Then look at what that does to the values of all neighboring 'like kind' houses. I'd say the house in the example is in need of big bucks for TLC and more, as prices have not dropped that far, BUT the sale will NOT indicate any specific problems that established the price. This type of sale creates problems for other sales in the appraisals that will show this sale price, as appraisals including it will not be classified as a foreclosure sale (which is an exception on comparable sales). Absent this government program, the market corrects itself. A house sale will happen somewhere IF there is actually an "owner occupant" involved. If it's just an investor, then it's an indirect subsidy for them. This will not increase home sales much immediately, it actually hurts them in the future with the decrease in appraisal values. On another note I'd mentioned before a few times; the Fannie/Freddie/HUD has US (the taxpayers) sitting on foreclosed houses across the nation which are costing us money to hold as they grow into worse shape. They put out reports on the homes held in groups according to number of days held.... I've yet to see any report that tells us the total number held, but after seeing that "five million households are behind on their mortgages" above, I'd bet dollars to donuts the total is near a million. This entire process creates more problems to face ...all for the price of $3,500 tax payers must pay for. A part that really burns me up is that $1,000 to the SECOND mortgage company. They are all 'bottom feeders' that hook idiots into low initial payments which jump to that 12-18% after 3-5 years. These mortgage companies should go under and take all their investors with them, not be rewarded. They are NOT foreclosing on houses like that one mentioned BECAUSE they have to pay off the first mortgage to take possession. On another note I'd mentioned before a few times, the Fannie/Freddie/HUD we, as the taxpayers, are sitting on are costing us money to hold as they grow into worse shape. They put out reports on the homes held in groups according to number of days. I've yet to see any report that tells us the total number held, but after seeing that "five million households are behind on their mortgages" above, I'd bet dollars to donuts the total is near a million. If we're going to see money wasted on the housing market, it needs to be for OWNER OCCUPANTS, those that at least try to make it THEIR home. This program looks like somebody in the mortgage industry is getting their back scratched, as I do not see any benefit for the public from it. ************** KerrI, I'm sorry about your mother's situation. I don't know what the details are there (job lost, over priced purchase....). Unfortunately, many jumped into the housing market when they should not have, a good percentage of them buying houses they knew they could not afford and thinking values would continue rising forever. What ever the circumstances are for your mom, I hope she weathers the storm and comes out okay in the end. Edited by kbp, Mar 8 2010, 09:47 AM.
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| Baldo | Mar 8 2010, 01:24 PM Post #6 |
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In California we are seeing drops of real estate prices of 50-60% in some areas. That means some people who bought homes over 5-10 years ago could owe more money on their homes then they are worth. Not all of them were scamming the system. The floor fell out when they lost their job. People are walking away from their homes that they have been paying on for years. I also look to the Government, Fannie. Freddie, especially the Fed who allowed marginal & Jumbo loans based on the hope Real Estate Prices would always rise. It was being marketed heavily out here. The State & Local Govts were depending on the rise of real estate and building to pay for their expansion of govt. Every lame brain program was enacted Great increases in compensation and pensions benefits were given out to Police, Firemen, Correctional Officers, and Management. Let the good times roll. That is why police & firemen were making $160,000 a year in Vallejo, CA, which has filed for bankruptcy. The Politicians saw money coming flowing in at unbelievable levels and spent all of it and promised benefits far into the future. It was a Politician feasting orgy by and for governement special interest and employees. I am afraid the situation is much worse that is being reported. Obama has a real problem. What he should do goes against his political self-interest. He has chosen his political self-interest. |
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